So What to Do if You Missed the Tax Deadline

Apr 18, 2013 By Nielsen Law Group In Taxation No Comment Tags : , , , ,

April 15th came and went and you didn’t get your tax return or extension request filed – what now? Well, here are a few things to consider:

  1. File as soon as possible.  If you owe federal income tax, you should file and pay as soon as you can to minimize any penalty and interest charges. Note also that there is no penalty for filing a late return if you are due a refund. BUT, if you wait too long you’ll miss out on getting the refund. So one way or the other, it’s best to file as quickly as you can.
  2. Penalties and interest may be due.  If you missed the April 15 deadline, and there was a really good reason (like a hurricane that knocked out power for your entire region) then filing late and the associated penalties and interest may be excused. But the IRS is rarely compassionate so if it’s not a regional disaster of some kind, don’t count on any leniency.
  3. E-file is often the best option.  IRS e-file programs are available through October 15th of each tax year. If you e-file and are due a refund, the IRS will normally issue it within 21 days. But check with your tax attorney because there are some reasons to paper file.
  4. Pay as much as you can.  If you owe tax but can’t pay it all at once, you should pay as much as you can when you file your tax return. Pay the remaining balance due as soon as possible to minimize penalties and interest charges.
  5. Installment Agreements are available.  If you need more time to pay your federal income taxes, you can request a payment agreement with the IRS. Apply online using the IRS Online Payment Agreement Application tool or file Form 9465, Installment Agreement Request.

Filing late is never a good idea but it’s also not the end of the world. If you find yourself in that position, just get the return prepared or contact your tax attorney and get it addressed as quickly as possible.

By: Evan A Nielsen, Esq. (Licensed in California)